Republicans open to targeted China tariffs despite steel flap

Republicans open to targeted China tariffs despite steel flap
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Republican lawmakers who broadly shunned President TrumpDonald John TrumpFacebook releases audit on conservative bias claims Harry Reid: 'Decriminalizing border crossings is not something that should be at the top of the list' Recessions happen when presidents overlook key problems MORE's wide-ranging steel and aluminum tariffs are expressing more optimism about a potential new round of trade actions that specifically target China.

While some are urging caution out of fears of sparking a trade war with Beijing, others are signaling confidence in such an approach, characterizing China as the justified target of any punitive trade measures.

“Obviously there’s a huge difference,” said Rep. Tom RiceHugh (Tom) Thompson RiceDemocrats struggle with repeal of key Trump tax provision The Hill's Morning Report - Trump struggles to replicate 2016 coalition Nonagenarian D-Day veterans recreate parachute drops over Normandy MORE (R-S.C.), a member of the House Ways and Means Committee, which oversees trade.

“I think that the retaliatory tariffs are there for a reason, to deal with bad actors. I don’t think anybody argues that China hasn’t taken advantage of us, and that it hasn’t hurt the American middle class,” he added.

Trump is said to be considering imposing tariffs on up to $60 billion worth of Chinese imports following an investigation under “Section 301” of the trade act, which covers intellectual property. 

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China has frequently been accused of stealing intellectual property from U.S. companies, as well as subsidizing certain goods and dumping materials into the world market at the expense of other producers.

White House trade adviser Peter Navarro told CNBC this week that Trump would receive recommendations from U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerOn The Money: Economy adds 164K jobs in July | Trump signs two-year budget deal, but border showdown looms | US, EU strike deal on beef exports Chinese, US negotiators fine-tuning details of trade agreement: report The Trump economy keeps roaring ahead MORE in the coming weeks on how to respond to “China’s theft and forced transfer of our intellectual property."

Lighthizer had originally suggested a $30 billion package of tariffs on imports from China, according to multiple reports, but the president wanted to double that figure, covering a range of more than 100 products.

Republicans are more optimistic about the administration taking targeted action against China after numerous GOP lawmakers, including Speaker Paul RyanPaul Davis RyanPaul Ryan moving family to Washington Embattled Juul seeks allies in Washington Ex-Parkland students criticize Kellyanne Conway MORE (R-Wis.), opposed Trump's recent move to impose sweeping tariffs of 25 percent on steel and 10 percent on aluminum.

Trump excluded Canada and Mexico from those tariffs after heavy lobbying, and many members of his party continue to quietly push him to exempt additional U.S. allies from the import taxes.

House Ways and Means Committee Chairman Kevin BradyKevin Patrick BradyRepublicans' rendezvous with reality — their plan is to cut Social Security The Social Security 2100 Act is critical for millennials and small business owners House panel releases documents of presidential tax return request before Trump MORE (R-Texas) told Fox News on Friday that lawmakers would continue working with the White House and Commerce Secretary Wilbur RossWilbur Louis RossEx-counterintelligence official warns Trump administration not to be shortsighted on Huawei The Hill's Morning Report - Trump searches for backstops amid recession worries Hillicon Valley: Trump alleges Google manipulated voters against him | Hillary Clinton fires back | Twitter, Facebook take down misinformation targeting Hong Kong protests | Trump delays penalty on Huawei | Tech giants slam French digital tax at hearing MORE on developing an exclusion process for products that would get trapped in the tariffs.

"It’s really important that the Commerce Department narrow those tariffs to make sure these fairly traded products aren’t swept in," Brady said.

Ross is scheduled to testify before the Ways and Means panel on Thursday, the day after Lighthizer appears before the committee. Lawmakers are expected to pepper the two officials with questions about their concerns surrounding the tariffs and the Trump administration's broader trade agenda.

“I think everybody approaches the tariff discussion sobered and concerned. That said, the issue of Chinese activity is where the scrutiny should lie,” said Rep. Peter Roskam Peter James RoskamEx-GOP Rep. Roskam joins lobbying firm Blue states angry over SALT cap should give fiscal sobriety a try Illinois Dems offer bill to raise SALT deduction cap MORE (R-Ill.), another Ways and Means member.

“The blanket tariffs on steel directly hurt my district. I represent small manufacturers that use a lot of steel, it’s imported, and this hurts them,” he said.

“Let me put it this way, nobody’s doing a candlelight vigil for the Chinese.”

Like many Republicans, Rep. David SchweikertDavid SchweikertBipartisan resolution aims to protect lawmakers amid heightened threats of violence Conservatives call on Pelosi to cancel August recess The 27 Republicans who voted with Democrats to block Trump from taking military action against Iran MORE (Ariz.), a staunch free-trader, said he approved of the overall policy thinking on targeted actions against China but said that details of the proposal would be critical.

“I’m a fan of, if you’ve documented someone cheating, deal with the bad act. If other countries are playing by the rules, respect that and understand that,” he said. Tariffs, he added, are only one tool in the box.

“Are we exhausting the levers that are available to us? Turns out, most of the time we go to the [World Trade Organization], we win,” he said.

Some Republicans remain concerned that that new tariffs would lead to a trade war with China.

“On the retaliatory side, obviously sorghum, soybean, those guys are generally concerned about the impact that that would have,” said Rep. Mike ConawayKenneth (Mike) Michael ConawayTexas faces turbulent political moment Democratic Party official: Texas is 'biggest battleground state in the country' Another Texas congressman planning to retire MORE (R-Texas), who heads the House Agriculture Committee.

But he remained open to giving the administration the benefit of the doubt.

“Mr. Trump has shown himself to be an adept negotiator, and so we’ll see where he goes,” he said.

Chinese foreign ministry spokesman Lu Kang told reporters this week that the U.S. should expect its own response to new tariffs.

“If the United States takes actions that harm China’s interests, China will have to take measures to firmly protect our legitimate rights,” he said, according to Reuters.

The business community, which has often seen the GOP as a steward of its interests, is also voicing concerns about Trump taking broad action against Beijing.

“The administration is right to focus on the negative economic impact of China’s industrial policies and unfair trade practices, but the U.S. Chamber would strongly disagree with a decision to impose sweeping tariffs,” said Thomas J. Donohue, CEO of the U.S. Chamber of Commerce.

Tariffs, he said, would “wipe out” a significant chunk of the benefits of the GOP tax law.

Democrats are more skeptical that Trump would be able to thread the needle with retaliatory measures.

“The president will propose tariffs, but what is not taken into consideration is how the cost of those tariffs are passed onto American consumers. So in the end, what is achieved other than the president getting his licks in?” asked Rep. Brian HigginsBrian HigginsHere are the 95 Democrats who voted to support impeachment On The Money: Sanders unveils plan to wipe .6T in student debt | How Sanders plan plays in rivalry with Warren | Treasury watchdog to probe delay of Harriet Tubman bills | Trump says Fed 'blew it' on rate decision Democrats give Trump trade chief high marks MORE (D-N.Y.), another Ways and Means member.

Rep. Richard NealRichard Edmund NealTrump argues NY tax return case should take place in DC NY files motion to keep Trump tax returns lawsuit out of DC court Democrats give cold shoulder to Warren wealth tax MORE (Mass.), the top Democrat on the committee, raised a similar concern.

“They seem to be making it up as they go along,” he said of the administration's trade policy.